Digital advertising is the fastest growing advertising medium in history. The Internet was primarily created as a military and educational device, and was never intended for what it is now — a huge medium for corporates to reach their prospects. Life without digital advertising is unimaginable today, as it has achieved manifold successes since its inception. Full of colour, it helps spread the word on services and products rapidly and effectively. The digital advertising industry has been a major taxpayer. It paid a considerable amount of service tax under the erstwhile Service Tax regime. Advertising agencies as well as Taxation Updates – November 2012 intermediaries (that is, companies engaged in buying and selling internet space/ timeslots for advertisements) were paying service tax on sale of Internet ad space/ timeslots. However, from July 1, 2012, the sale of space or timeslots for advertisement over Internet is not liable to service tax as it comes under the negative list of services. The intermediary buys Internet ad space or timeslots from publishers and sells them to advertising agencies/ advertisers.
Category Archives: Tax
Gross Direct Tax Collections increase up by 6.6% India
Gross Direct Tax Collections inches up by 6.6% Gross direct tax collections have scaled up from Rs. 2,84,081 crore during Apr-October 2011-12 to Rs. 3,02,810 crore during Apr- October 2012-13 with growth of about 6.6%. While gross collection of corporate taxes has risen from Rs. 1,89,872 crore during Apr- October 2011-12 to Rs. 1,93,679 crore Apr- October 2012-13 with a growth of 2%. The gross collection of personal income tax has scaled up from Rs.93,769 crore to Rs. 1,08,569 crore during the same period with robust growth of about 16%. The net direct tax collections have posted significant increase from Rs.2,18,850 crore during Apr- October 2011-12 to Rs.2,50,866 crore in Apr- October 2012-13 and have registered a growth of about 15%. The net collections of wealth tax has scaled up from Rs. 418 crore to Rs.526 crore during the same period with a growth of about 26%. While, securities transaction tax (STT) has scaled down from Rs. 2,958 crore to Rs. 2,502 crore during same period with de-growth of about (-) 15%.
SERVICES PROVIDED IN TAXABLE TERRITORY ALONE ARE TAXABLE’
S.No. 6 of the notification no. 25/2012-ST dated 20.06.2006 exempts services provided by an arbitral tribunal or an individual as an advocate or a partnership firm of advocates by way of legal services to a business entity with a turnover up to rupees ten lakhs in the preceding financial year. Does the word ‘turnover’ include exports? That notification does not define ‘turnover’. So, that word has to take the normal commercial meaning, which would be ‘total sales’, including exports. What is the taxability of commission earned in foreign exchange for marketing the goods of foreign parties in India, under the old and current service tax laws? In the dispensation before 1.7.2002, the Business Auxiliary Service covered the service you refer to and the same was also covered under Rule 3(iii) of the Export of Services Rules, 2005. After 1.7.2012, as per Section 66B of Finance Act, 1994, a service provided or agreed to be provided in the taxable territory alone is taxable. As per Rule 3 of the Place of Provision of Services Rules, 2012, the place of provision of service is the location of the service receiver, which for the service in question is a non-taxable territory.
Indirect Tax Notifications India
Notifications: Customs„X CBEC has issued a Notification No. 66/2012 ¡V Customs (Non-Tariff), dated 31st July, 2012 amending Notification No.36/2001-Customs (N.T) dated 3rd August 2001. For the full text of the Notifications, members may visit: http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2012/csnt2012/csnt66-2012.htm
CBEC has issued a Notification No. 67/2012 ¡V Customs (Non-Tariff), dated 1st
August, 2012 regarding rate of exchange of conversion of each of the foreign currency with effect from 02nd August, 2012. For the full text of the Notifications, members may visit: http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2012/csnt2012/csnt67-2012.htm CBEC has issued an Order ¡V Customs (Non-Tariff), dated 1st August, 2012 regarding appointment of Common Adjudicating Authority. For the full text of the Notifications, members may visit: http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2012/cs-nt2012/odr-01aug12-1.pdf  CBEC has issued a Notification No. 38/2012 ¡V Customs (Anti Dumping Duty), dated 6th August, 2012 extending the validity of Notification no. 89/2007-Customs dated 25th July, 2007 by one more year, i.e, upto and inclusive of 24th July, 2013 pending the outcome of sunset review. For the full text of the Notifications, members may visit http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2012/csadd2012/csadd-38-2012.htm
CBEC has issued a Notification No. 68/2012 ¡V CUSTOMS (Non-Tariff), dated 8th August, 2012 amending Notification No. 63/1994-Customs (N. T.) dated the 21st November, 1994. For the full text of the Notifications, members may visit:
http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2012/csnt2012/
csnt68-2012.htm CBEC has issued a Notifications No. 69/2012 to No. 73/2012 ¡V Customs (Non- Tariff), dated 9th August 2012 regarding appointment of Common Adjudicating Authority. For the full text of the Notifications, members may visit: http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2012/cs-nt2012/csnotfns-nt12.htm
CBEC has issued a Notification No. 74/2012 ¡V Customs (Non-Tariff), dated 14th August, 2012 amending Notification No.36/2001 ¡V Customs (Non-Tariff) dated 3rd August 2001. For the full text of the Notifications, members may visit:
http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2012/csnt2012/csnt74-2012.htm
CBEC has issued a Notification No. 75/2012 ¡V Customs (Non-Tariff), dated 16th August, 2012 regarding rate of exchange of conversion of each of the foreign currency with effect from 17th August, 2012. For the full text of the Notifications, members may visit: http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2012/csnt2012/csnt75-2012.htm
CBEC has issued a Notification No. 46 /2012 ¡V Customs (Tariff), dated 17th August, 2012 amending Notification 12/2012-Customs, dated 17-03-2012, prescribing 1% ad valorem specific rate of Countervailing duty (CVD) on various
types of Fertilizers, when imported into India. For the full text of the Notifications, members may visit: http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2012/cstarr2012/cs46-2012.htm
CBEC has issued a Notification No. 47 /2012 ¡V Customs (Tariff), dated 21st August, 2012 regarding exemption of import duty on oil cakes thereby amending Notification 12/2012-Customs, dated 17-03-2012
Capital Gain Tax India
CAPITAL GAINS TAX BREATHER FOR CREDIT SUISS: The Authority for Advance Rulings (AAR) has ruled that vesting of shares of an Indian company on account of an overseas upstream merger was not liable to capital gains tax in India. The ruling has come in the case of Credit Suisse (International) Holding AG (the applicant), a company incorporated in Switzerland. Simply put, there would be no capital gains tax arising on Credit Suisse (International) Holding AG in India as a result of its overseas merger into its parent, another Swiss incorporated company. As a result of the overseas upstream merger, the shares of the Credit Suisse International’s wholly-owned subsidiary company in India – Credit Suisse Services (India) Pvt Ltd – were vested with its parent in Switzerland. AAR made some far-reaching observations about tax liability that would arise in India due to an overseas parent-subsidiary merger. The ruling is binding only on the applicant and the revenue department. But, it can have persuasive value on other transactions with similar situations, say tax experts.
